TON (Telegram Open Network) Review
What is TON?
TON Coin represents a cutting-edge blockchain ecosystem that aims to bring together various cryptocurrency chains and the existing World Wide Web into a new global network. The TON project was initially initiated by Telegram founders Nikolay Durov and Pavel Durov, but it has since been handed over to the open TON community, which is now responsible for its support and development.
In September 2021, the Durovs released a public report to the Telegram developers, highlighting the progress made in the establishment and advancement of the TON Coin blockchain network. The work received recognition, and in support of their efforts, the Telegram team granted the open source community the right to use the ton.org domain and the github.com repository, accessible at the following link: https://github.com/newton-blockchain. Consequently, the TON Foundation became the official development team for the TON cryptocurrency.
Information about the development of the Telegram Open Network (TON) blockchain first surfaced online approximately four years ago. The concept revolved around creating a digital network with its own native token and integrating it into the Telegram messenger. In the same year, Pavel Durov sought additional investments to sustain the project’s progress. In 2018, an announcement appeared on the TechCrunch portal, revealing the imminent launch of the TON network through an ICO, accompanied by the publication of a project “white paper.” The initial token sale successfully raised $1.7 billion, attracting notable investors such as Roman Abramovich, Sergei Solonin (co-founder of Qiwi), and David Yakobashvili (co-founder of Wimm-Bill-Dann).
Over the following year, the concept underwent several revisions. The TON cryptonetwork was envisioned to handle one million transactions per second, overcome TON Proxy blocking, incorporate a domain name system, facilitate file storage, provide a platform for third-party service integration, and include other essential features. However, the plans faced a setback when the U.S. Securities and Exchange Commission (SEC) intervened.
The SEC representatives deemed Gram, the token associated with TON, as not a genuine commodity or cryptocurrency but rather a security that needed to comply with U.S. regulations. Consequently, the TON issuer was required to disclose financial information, details about its activities, and potential risks associated with purchasing Gram. As Pavel Durov and the company failed to fulfill these obligations before launching the ICO, they had to refund the invested funds and pay a substantial fine.
In May 2020, a U.S. court halted the progress of TON, and Pavel Durov officially announced the project’s termination.
Though accepting the court’s decision, the Durovs decided to make the program code publicly available, allowing blockchain network developers to refine and advance the TON concept. Consequently, the Toncoin distributed network was launched. There was no pre-sale of tokens, as the project is now self-financed. TON Coin is not a fork of the underlying network but rather operates on the Telegram Open Network, which is accessible to all interested parties.
Further Development of the Project
The project’s roadmap and development plan are elaborated in the Toncoin declaration, providing a comprehensive outline of the upcoming stages.
- The initial stage, named “Raging Bull,” grants blockchain engineers the flexibility to modify network configuration parameters according to their discretion. During this phase, SMV contracts are manually calculated. The program code incorporates a decentralization bomb with a countdown timer, allowing for a period of free modification. Additionally, decentralized pool contracts are established, enabling stakers to participate in system management. Every user holds the right to vote, irrespective of their stake size.
- The second stage, referred to as “Rumble Fish,” commences immediately after the decentralization bomb timer expires. At this point, all anarchy subsides, and independent validators assume full control over the ecosystem.
- The third stage, known as “Fight Club,” materializes when a significant number of validators and decentralized pools actively operate within the TON Coin network, resulting in a fully decentralized blockchain. The voting process is automated, and donor contracts facilitate the distribution of coins among newcomers.
It’s important to note that the project operates without raising funds through ICO or any other form of pre-sale of coins. Initially, five billion TON Crystal tokens were transferred to three “givers” managed by multi-signature developers. The distribution scheme on the nodes is as follows:
- 85% is allocated to community members for their contributions to the network.
- 5% is reserved for validators supporting the network.
- 10% is designated for developers who make substantial contributions to the development of TON.
Mining of the TON cryptocurrency on video cards has been finished, with all mined coins transferred to the wallets of miners. Transaction processing is facilitated by trusted nodes.
TON Staking
In principle, any network user can become a validator by operating a powerful server connected to a stable and high-speed internet network. The server should have a bandwidth of at least 1 Gb/s and a fixed IP address. The hardware requirements include:
- Eight-core central processor.
- 64GB RAM.
- Minimum 1 TB SSD (hardware or software RAID).
The Toncoin validator node operates on LINUX, utilizing MyTonCtrl as a user-friendly open-source tool. Detailed instructions for setting up a trusted node can be found on the official project website.
It’s important to highlight that validators face penalties for dishonest behavior. Running a trusted node on low-power hardware can lead to network crashes and the loss of one’s bet, which amounts to a significant sum. Currently, the trusted node’s bet stands at 600,000 TON (approximately $622,000). However, if you possess the necessary equipment and wish to run a TONCOIN validator node, you can stake only 10,000 TON and receive the rest from nominators. Of course, you will need to share your earnings with them.
In the TON Coin ecosystem, there are only 1000 validators. Other node owners can become “phishermen,” serving as blockchain auditors. Phishermen validate the blocks already included in the chain and report any identified issues. Each report must be substantiated. Validators responsible for adding defective blocks to the chain face immediate fines, whereas phishermen receive bonuses.
In the event that the TON ecosystem attracts a significant number of users over time, additional groups of data processing nodes known as collators may assist validators. Collators are responsible for pre-checking the validity of blocks in shardchains. They don’t sign or add blocks to the chain themselves but provide pre-formed blocks with Merkle proofs to validators for signature. Currently, the network doesn’t require the services of collators, as validators effectively handle the process. However, this situation may change in the future.
If, for any reason, you are unable to maintain a full node to support the TON blockchain network’s operation, you can become a nominator and earn profits through staking. By sending a minimum of 50 coins from your TonHub wallet, you can participate in a decentralized pool of nominators and receive a share of the profit. As per the established rules, the validator receives 40% of the commission for their participation in network maintenance, while the remaining 60% is distributed among nominators.
Available Wallets
You have the option to download the official wallet for the digital currency TONCOIN from the project’s official website at https://ton.org/wallets. There are a total of seven wallets available for various platforms. You can download the full node for Windows, use the Chrome plugin, or access the web interface. Additionally, there are wallets specifically designed for Linux and macOS, as well as mobile applications for iOS and Android.
If you are an Apple user, you can download the TON Coin Wallet from J&B Investments Group Inc at https://apps.apple.com/by/app/toncoin-wallet/id1560210939. This wallet features a user-friendly interface without any unnecessary complexities. The wallet creation process is intuitive and fast, requiring you to save a 24-word seed. It caters to users with minimal blockchain knowledge. For a comprehensive list of available wallets, you can visit https://ton.app/wallets.
Development Prospects
Optimistic projections suggest that a platform with such advanced technological features is destined for success. However, skeptics argue that without integration into messaging platforms and access to major exchanges, the road ahead might be challenging. Nevertheless, progress has been made, and the ability to buy and sell the cryptocurrency is already in place. As time progresses, the number of exchanges supporting TON will likely increase. Recently, a bridge connecting the TON and Ethereum networks was launched on the mainnet, enabling seamless TON coin transactions at https://ton.org/bridge. Additionally, wrapped tokens on the BSC network can be sent to the liquidity pool to receive dividends.
The TON platform is specifically designed for the deployment of decentralized applications. Developers can accept TONCOIN cryptocurrency as payment for utilizing their utilities or purchasing goods within these programs.
TON services support two types of applications:
TON Sites: These are analogous to traditional websites and support hyperlinks. TON Sites cannot be blocked by external regulators since the TON application is distributed across client devices.
“Applications in the Fog”: These are similar to mobile application services and are inaccessible to regulators as updates are distributed within the TON network. Telegram messenger serves as a prime example of such an application.
To circumvent various forms of restrictions, the TON network (previously known as the Telegram Open Network) incorporates a proxy mechanism that can be enhanced by third-party developers. TON Proxy enables users to utilize real anonymization functions, concealing their real IP addresses when accessing specific platform resources. TON Proxy operates on a peer-to-peer (P2P) method, akin to the Tor architecture. TON has the potential to become its own browser for the Global Network, while TON Storage serves as an alternative to traditional hosting. By integrating the TON browser, TON Storage, and TON DNS, we can envision a modern Internet infrastructure with an integrated payment system.
Conclusion
TON presents an opportunity to decentralize the global financial system, making Toncoin a highly relevant and impactful project.